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In order to regulate rentals in the GBHA to help maintain our ‘community of neighbors,' we have instituted a combination of 1) a rental cap and 2) a GBHA licensing process.
1. Rental cap: GBHA will honor no more than 25 NBT/GBHA licenses at any one
time.
2. GBHA license:
A. In order for an owner to rent in any capacity, the owner must hold both an
NBT license and a GBHA license. An NBT license is typically issued for
three years, and a GBHA license will, upon approval, be issued to run for
the same length of time.
B. A GBHA license will only be issued to an owner who 1) completes a
GBHA rental application, 2) is current in their Association dues, 3) is
approved by the Board, 4) has successfully been issued an NBT license,
and 5) pays the $450 licensing fee.
C. The GBHA license will be issued for those current NBT license holders
(held license as of June 23, 2025 - moratorium date) who have complied
with the rules as set forth in June, 2025 (this requirement was separate
from the moratorium):
i. “All residential short-term rental owners must submit their licenses
and links to the home’s listings on the home sharing sites to Harbor
Cove Management to keep on-file before June 15, 2025. License-
holders must indicate if their home is primarily a residence which is
rented part time and otherwise occupied by the owner for 30 days
or more out of the year or primarily a rental property (the owner
occupies the home for less than 30 days out of the year) for our
records.”
ii. Current NBT license holders who apply for a GBHA license will
have their fee and license duration pro-rated to align with the length
of their NBT license.
iii. Those NBT license holders not in compliance will not receive the
GBHA license and will be subject to rule violations as described in
the rules, available as an attachment.
D. Any owner who is renting without a current NBT license must cease
immediately, and apply for a GBHA license as described here.
E. If an owner (who does not currently hold an NBT license and did not hold
a license as of June 23, 2025) wishes to rent their home, they may apply
for a GBHA license.
i. The GBHA rental application includes a series of questions related
to intended owner occupancy of the home, primary purpose of
rental license, and other questions.
ii. The application will be evaluated by the Board, who may, in its
discretion, choose to
a. Issue a license;
b. Issue a license with restrictions;
1. Restrictions may be imposed to ensure compliance
with bylaws, specifically that lots be used for “single-
family residential purposes exclusively.”
2. Restrictions may include, but are not limited to, a
standard period of required owner occupancy prior to
renting, a special assessment, and/or limits on
allowed rental nights in a calendar year or season.
c. Not issue a license.
F. If GBHA is at its capacity for rentals, then the owner can join a waitlist for
receiving a GBHA license; to secure a spot on the waitlist, the owner must
fill out a GBHA license application and make a request to be placed on the
waitlist. Position on the waitlist will be first come first served, based on
time of email received.
G. The historically exempt lots remain eligible to maintain an issued short
term rental license, and can transfer their eligibility to maintain such a
license, until that exempt use is abandoned (as described under
Paragraph D of the GBHA Bylaws). But, when the owner of a historically
exempt lot abandons their short term rental use, they lose those
historically exempt status to operate a short term rental and any GBHA
license issued to such an owner under this Section shall immediately be
considered void and non-transferable. The owner must then apply for and
be approved for a new GBHA license before short term rentals may
resume on that lot.
H. GBHA licenses issued by the Association for all other lots within the
Association (other than the historically exempt lots) are non-transferable,
and a GBHA license issued under this section shall become void upon
ownership changes except for limited circumstances (see full policy). In
the event of license termination due to ownership change, a new GBHA
license must be obtained by the new owner from the Association before
rentals may be resumed.
I. New Homebuyer Rental Restriction: No Owner shall lease, rent, or
otherwise grant short term occupancy rights to their residence to any third
party for the first twenty-four (24) months following acquisition of title
("Initial Occupancy Period"). During this Initial Occupancy Period, the
Owner must personally use the residence for a minimum of thirty (30)
days within the first twelve (12) months to establish owner usage.
Exceptions to this are detailed in the full policy.
3. Exceptions: The Board may, in its discretion, provide for an exception, which will
allow a homeowner to rent for a limited period of time. Exceptions may be
granted for reasons including, but not limited to, life transitions or financial
necessity.
Life happens. This exception policy allows homeowners facing challenging circumstances to
apply for a temporary GBHA rental license even if the 25-license cap has been reached.
ALL EXCEPTIONS ARE FOR OWNER-OCCUPIED PROPERTIES ONLY
To qualify for any exception, the homeowner must apply for a GBHA STR license and meet all requirements, including the owner-occupancy standard: the owners spend 30+ days per year at the property. This policy does NOT provide exceptions for:
● Investor-owned properties with no owner presence (defined as less than 30 days
occupancy per year)
● Pure investment/business operations
Goal: Help owners who use and love their Gordon Beach properties but face circumstances making full-time ownership challenging—NOT to create loopholes for non-owner-occupied rentals.
Key Principles
● Owner-Occupancy is Non-Negotiable: Helps owners who USE their properties, not investors
● Presumption of Good Faith: We trust our neighbors; applications presumed legitimate
● Privacy Respected: No disclosure of medical/financial/family concerns to Association members (board or board subcommittee only)
● Clear Standards: Objective criteria; bias toward approval if owner-occupancy met
● Exceptions Outside the Cap: Don't consume standard license spot
● Regular Review: Board reviews policy and adjusts as needed
OWNER-OCCUPANT CAP EXCEPTIONS
Who Qualifies
Owners who meet the 30-day requirement but are experiencing circumstances that necessitate rental income, including but not limited to:
Life Transitions:
● Career relocation or sabbatical
● Care responsibilities or medical treatment
● Major life events (divorce, family emergency)
● Inheritance/estate transitions
● Extended travel for work/education
Financial Necessities:
● Unexpected major repairs
● Job loss or income reduction
● Retirement income insufficient
● Multi-generational family properties where rental income helps maintain shared
ownership
Exception Requirements
● GBHA license application
● Brief written statement explaining circumstances
● Anticipated timeline of rental use
● Optional supporting documentation if relevant (e.g., repair estimate, relocation letter)
● NOT required: Detailed financial records, income statements, or bank statements
Terms
● Granted for 2 years initially
● Renewable once for an additional year, upon approval
● After exception license expires, may reapply with updated circumstances
● Simple annual update on exception situation
What Makes This Work
● Acknowledges both temporary disruptions and ongoing challenges
● Respects privacy - no invasive documentation required
● Time-limited to ensure exceptions remain exceptional
● Recognizes that rental income can help families maintain owner-occupancy
● For multi-generational families: Combined family days count toward requirement
Application Process - Simple and Accessible
1. Self-Assessment - Review requirements and confirm owner-occupancy
2. Simple Application - GBHA license application + brief statement + minimal
documentation
3. Application Review - Reviews for completeness and owner-occupancy standard
4. Response within 60 days - Clear explanation if denied, with right to appeal
5. Privacy Protected - All applications kept confidential; board reports only aggregate
numbers
Safeguards Against Abuse
How we prevent this from becoming a loophole for non-owner-occupied properties:
● Owner-occupancy attestation required (false statements = license revocation)
● Annual attestation for renewals confirming continued owner-occupancy
● Neighbor input process for concerns about misrepresentation (via established
community complaint system)
● 3-year maximum term requires reapplication
● Clear revocation process if owner-occupancy drops significantly
● Exception cap: Maximum 4 active exceptions at any time
Exception Capacity Limit
The Board will maintain a maximum of 4 active exceptions at any time.
Rationale for this limit:
● Board Capacity: Each exception requires initial review, annual monitoring, and periodic compliance checks. Our volunteer board has limited capacity.
● Program Integrity: A small number ensures each receives proper attention
● Community Trust: A defined limit demonstrates exceptions are truly exceptional
● Fair Administration: With limited spots, the Board can ensure thorough, consistent
review
How the limit works:
● Applications reviewed in order received
● If 4 exceptions are active, new applications held until spot opens
● Renewals for existing exceptions take priority over new applications
● Board will notify applicants of approximate wait times if at capacity
What This Is NOT
❌ Not a loophole for investor properties - owner-occupancy required
❌ Not automatic - all require application and approval
❌ Not a "tribunal" where you plead your case to neighbors
❌ Not requiring invasive financial disclosure
❌ Not a competitive process where exceptions are scarce
❌ Not public - your situation remains private
❌ Not punitive - designed to help owner-occupant families stay
Annual Reporting and Transparency
Board provides annual report to community:
● Number of exception applications received
● Number approved/denied
● Number of active exceptions
● Confirmation that all active exceptions meet owner-occupancy standard
● Any policy adjustments needed based on experience
Note on coordination with New Buffalo Township:
Pursuant to New Buffalo Township (NBT) Ordinance, § 332-6. Conditions of license, the NBT licence may not be “transferred by the holder to any other person except upon prior approval of the Township.”
While NBT will transfer a license, upon Township approval, GBHA requires all new propertyowners to apply for a new license to ensure continued compliance with Association owner-occupancy requirements and community standards. NBT approval of transfer of the NBT license does not constitute GBHA approval nor licensure to operate a rental in Gordon Beach.
GBHA Policy:
(A) General Rule GBHA licenses issued by the Association are non-transferable, and a GBHA license issued under this section shall become void upon ownership changes except as provided in subsection (C). In the event of license termination due to ownership change, a new GBHA license must be obtained by the new owner from the Association before rentals may be resumed.
(B) Ownership Changes Causing License Void As used in this section, an "ownership change" that voids a GBHA license shall include the following:
1. Any sale or conveyance to any unrelated third party
2. Any transfer of controlling interest to person/entity not previously holding such interest
3. Any foreclosure, tax sale, or involuntary transfer
4. Any transfer of controlling interest or membership in a corporate entity which is theowner of the premises exceeding fifty percent (50%)
(C) Permitted Ownership Changes (License Continues) The following ownership changes shall NOT void the GBHA license, provided all verification requirements are met:
1. Transfer between current license holder and spouse or domestic partner
2. Transfer resulting from divorce decree or legal separation
3. Transfer to children, parents, or siblings of current license holder, whether by gift, inheritance, or estate planning
4. Transfer to a revocable trust where the grantor retains control and remains a beneficiary, provided that a controller or beneficiary of the trust commits to satisfy the continuing owner-occupancy requirement (minimum 30 days annually)
5. Transfer to new owner if current owner is historically exempt (as defined by bylaws) and has not abandoned short term rental use
(D) Verification Requirements for Permitted Transfers For any claimed permitted transfer under subsection (C):
1. Notification to the Association within thirty (30) days of transfer
2. Affidavit from transferor and transferee confirming:
○ Family relationship and supporting documentation
○ Continuing owner-occupancy commitment (minimum 30 days annually)
○ Agreement to honor all existing license conditions
3. Updated contact information if applicable
4. Verification that property is current with Association dues
(E) New Owner Application Process For all other ownership changes:
1. Waiting Period: New owners must wait two years after closing before applying for a rental license (may join waitlist immediately)
2. Fresh Application: Complete new GBHA rental application
3. Owner-Occupancy Verification: Must satisfy all current owner-occupancy requirements
4. Subject to All Current Rules: Application subject to any applicable license limits,
waiting lists, and any other current GBHA rules
(F) Board Determination Authority The Board has sole discretion to determine whether any ownership change qualifies as "permitted" under subsection (C) and may require additional documentation or verification as deemed necessary.
This policy is intended to be an additional safeguard against non-owner-occupied short-term rentals in Gordon Beach to protect our community of neighbors. It requires new home
purchasers to wait two years before applying for a STR rental license.
Section 1: Initial Occupancy Period
No Owner shall lease, rent, or otherwise grant short term occupancy rights to their residence to any third party for the first twenty-four (24) months following acquisition of title ("Initial Occupancy Period"). During this Initial Occupancy Period, the Owner must personally use the residence for a minimum of thirty (30) days within the first twelve (12) months to establish owner usage.
Section 2: Application of Policy
a) This Initial Occupancy Period applies to all residence acquisitions resulting from arm's length transactions, including but not limited to: purchases of newly constructed residences, resale residences, and third-party purchases.
b) For purposes of this policy, each residence shall maintain its own Initial Occupancy Period based on its individual acquisition date.
c) Personal use by the Owner's immediate family members shall count toward the thirty (30) day requirement.
Section 3: Exceptions to Initial Occupancy Period
The following property transfers shall NOT trigger a new Initial Occupancy Period:
● Transfer between current license holder and spouse or domestic partner
● Transfer resulting from divorce decree or legal separation
● Transfer to children, parents, or siblings of current license holder, whether by gift,
inheritance, or estate planning
● Transfer to a revocable trust where the grantor retains control and remains a beneficiary, provided that a controller or beneficiary of the trust commits to satisfy the continuing owner-occupancy requirement (minimum 30 days annually)
● Transfer to new owner if current owner is historically exempt (as defined by bylaws) and has not abandoned short term rental use
Section 4: Permitted Uses During Initial Occupancy Period
During the Initial Occupancy Period, residences may only be occupied by the Owner, the Owner's immediate family, long term renters (defined as consecutive occupancy of 30 days or more) or non-paying personal guests. No rental income or other compensation may be received for use of the residence during this period.
Section 5: Hardship Exceptions
The Board of Directors may, in its sole discretion, grant temporary exceptions to this policy in cases of documented hardship. Owners seeking an exception must follow the established Exception Policy and Application Process. All exception requests must be submitted in writing with supporting documentation as outlined in the application process. The Board's decision on exception requests include the right to appeal.